Luminor business units in the Baltic States are owned by Nordea and DNB through a holding company, Luminor Group AB (established in Sweden. Nordea and DNB have equal voting rights over the combined bank. Nordea has proportional 56% and DNB proportional 44% of economic ownership level reflecting the relative equity value of their contribution to the combined bank at the time of closing on October 1 2017.
On 13 September 2018 an agreement was signed between DNB Bank ASA and Nordea Bank AB with US based private equity firm Blackstone to sell majority stake in Luminor. As part of the transaction, Blackstone will acquire a 60% majority stake in the bank. Nordea and DNB will retain an equal 20% equity stake in Luminor and will continue to support the bank with long term funding, expertise and ongoing representation on the Board of Directors. Additionally, Blackstone has entered into an agreement with Nordea to purchase their remaining 20% stake over the coming years.
Closing of the transaction is subject to European Central Bank’s and local supervisory authorities’ approvals and is anticipated to occur in first half of 2019.
Becoming one pan-Baltic financial services provider
On February 19 2018, Luminor took the first steps to fill in prerequisites of the legal reorganization process by submitting a draft Merger Agreement to State Enterprise Register of Latvia and notifications to the Estonian Financial Supervisory Authority for branches opening in Latvia and Lithuania. On June 28 2018 Luminor received regulatory approval from the European Central Bank to carry out the cross-border merger.
On 2 January 2019 Luminor has merged its Baltic entities and finalized the legal integration with a central office in Estonia and brances in Latvia and Lithuania.
The change has simplified our legal structure and will ensure fully integrated, customer-centric Baltic banking operations.